IMF raises Malaysia’s GDP forecast to 4.7% for 2026

 The IMF had forecast Malaysia’s 2026 GDP growth at 4.3% in its January 2026 World Economic Outlook report.

Malaysia’s economy grew by 5.2% last year on strong domestic demand and favourable exports. (Envato Elements pic)

PETALING JAYA:

 The International Monetary Fund (IMF) has raised its projection for Malaysia’s gross domestic product (GDP) growth to 4.7% for 2026, an upward revision of 0.4 percentage points.

In its April 2026 World Economic Outlook (WEO) report released today, the IMF also projected Malaysia’s real GDP growth at 4.3% in 2027.

The IMF had forecast Malaysia’s 2026 GDP growth at 4.3% in its January 2026 WEO report.

This comes as the IMF cut its global growth outlook for the year due to the Iran war-driven energy price spikes and supply disruptions, warning that the global economy would teeter on the brink of recession if the conflict worsens and oil stays above US$100 per barrel through 2027.

It said its most optimistic scenario assumes a short-lived Iran war and forecasts 3.1% real GDP growth for 2026, down 0.2 percentage point from its previous forecast in January.

Last week, the World Bank raised its forecast for Malaysia’s 2026 economic growth to 4.4% from 4.1% despite rising tensions in the Middle East.

Its lead economist for Malaysia, Apurva Sanghi, cited Malaysia’s resilient macroeconomic fundamentals, even as downside risks from geopolitical conflicts, trade tensions and structural shifts in global supply chains cloud the economic outlook.

Malaysia’s economy grew by 5.2% last year on strong domestic demand and favourable exports. Bank Negara Malaysia has projected the economy to grow at between 4% and 5% in 2026. - FMT